Metrobank and branch banking: A paper on strategies adopted for sustained leadership in Philippine banking

The continuing efforts by the government to liberalize the economy has steadily pressured Metrobank to become a global player. But the countrys leading bank has stressed that it must first achieved leadership in the Philippines by fortifying its strengths at home, to maintain its hold of the domestic market. This it has continually done by having as one of its major strategies the largest network in the country: 351 as of October 1997. Metrobanks strategy on expression had its roots with the liberalization of branch licenses in the Banking Sector. As the economy grew in the last few years, the Bank found its call to be nearer to its clients, thus increasing its branches. However, with competition tightening and the economy trickling down to many areas all over the country (despite the slowdown), its system for setting up branches needed upgrading. Branches need to be established in growing districts at a faster rate. Metrobank cannot afford delays if it intends to strengthen its No. 1 position in the Philippines. In support of Metrobanks expansionary strategies, this paper proposes the improvement of the present applied. In particular, its system of coordination between departments and the need for a stable source of information is addressed in this paper. The strategies recommended in this paper implies that the Bank improve further on its cost-management to produce a stronger Metrobank in the years to come. In line with this strategy, the two divisions involved in branch expansion should move away from traditional sources of information and implement its own market research units to achieve a more stable source of data. To have a Head Office unit involved in gathering information, the bank can quickly evaluate and act on branch site proposals. Both divisions also conduct a more efficient mobilization of resources by improving its coordinating activities among the different departments. By addressing these needs, Metrobank could cut the amount of time needed to establish a branch: from 10 months down to possibly six. Marketing efforts of the Bank should be geared into establishing more branches into the countryside and to include more involvement into product and service development. Operations should hasten implementation of Reengineering efforts initially started the year before. Financials should dictate improved deposit portfolios (focus on savings/current and other Low-Cost deposits). Lastly, Human Resources Management should introduce more modules that equip even staff and line positions with marketing skills, and operating offices with long-range planning